On Tuesday, Canaccord Genuity adjusted its outlook on Akoya Biosciences Inc (NASDAQ: AKYA) shares, lowering the price target to $6.00 from the previous $10.00, but maintained a Buy rating on the stock. This revision follows Akoya Biosciences' first-quarter results for 2024, which fell short of expectations.
The company's financial performance revealed weaker-than-anticipated instrument placements and revenue, which were significantly below the estimates set by Canaccord Genuity and the Factset consensus.
The company, which released its quarterly results after the market closed on Monday, faced several challenges that impacted its revenue. The opening of a new facility and the delayed recognition of revenue from biopharma clinical trial milestones were cited as the primary headwinds that the company encountered. Despite these challenges, reagents revenue saw a year-over-year increase, although the growth was not as robust as anticipated.
Akoya Biosciences remains optimistic about its ability to recapture the deferred revenue later in the year, particularly in the second half of 2024. In response to the first-quarter performance and the adjusted revenue expectations, Canaccord Genuity has revised its near-term estimates for Akoya Biosciences, which in turn has influenced the new price target.
The market's reaction to the quarterly report was significant, with Akoya Biosciences' shares dropping by 30% in after-hours trading. Despite this downturn, Canaccord Genuity views the current lower stock price as an opportunity for investors to buy into the company.
InvestingPro Insights
Canaccord Genuity's recent adjustment of Akoya Biosciences Inc's price target coincides with several noteworthy metrics and insights from InvestingPro. With a market capitalization of $203.45 million, Akoya Biosciences is navigating the biotechnology landscape with a significant cash burn rate and a volatile stock price, as highlighted by InvestingPro Tips. The company's price-to-earnings (P/E) ratio stands at -2.99, reflecting the market's anticipation that it will not be profitable in the current year. This is further substantiated by a negative PEG ratio of -0.13, which typically indicates that the market expects lower future earnings growth.
On the positive side, Akoya Biosciences' liquid assets surpass its short-term obligations, providing some financial cushioning. The company's revenue growth is also notable, with a 29.09% increase over the last twelve months as of Q4 2023. Despite this, the company's operating income margin was -57.98%, underscoring the challenges it faces in achieving profitability.
Investors considering Akoya Biosciences should be aware that the company does not pay a dividend, which may influence investment decisions for those seeking income-generating stocks. For those looking to delve deeper into Akoya Biosciences' financial health and future prospects, InvestingPro offers additional insights and metrics. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable resources, including 6 more InvestingPro Tips for Akoya Biosciences.
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